and Industry, Coimbatore
Press Release
February 17, 2009: Tamilnadu Budget 2009-10
Our Chamber welcomes the trade friendly Budget presented by the Hon’ble Minister for Finance, Government of Tamilnadu.
Our long standing demand of reduction in the sales tax levied at 12.5%, on branded ghee, branded pickles, I.T. products, namely, ipod, MP3 and MP4 players to 4% is heartening. Similarly the reduction in sales tax levied on sago and starch through Salem SAGOSERVE from 2% to 1% is welcome. We whole heartedly welcome the exemption from purchase tax on pulses, grams, peas and peas dhal with effect from 1.1.2007.
Our Chamber had represented that manufacturers and traders whose turnover was below the threshold limit of Rs.5 lakhs and 10 lakhs, respectively, during the period from 1.1.2007 to 31.3.2007 should be given the benefits under VAT Act.
Accepting our request, the assessment for the above period will be made under Tamil Nadu Value Added Tax Act (TNVAT Act) treating the total turnover for the year 2006-2007, including the turnover under TNGST Act, from 1.4.2006 to 31.12.2006 as annual total turnover under TNVAT Act. This assessment will be made only on dealers who have collected VAT during the above period. Due to this, about 10,000 small manufacturers and traders will be benefited.
However our demand for removal of sales tax on Cotton Yarn for a period of two years, in view of the serious crisis, the Spinning Industry is facing, has not been considered. Our request for reduction in stamp duty has also not been considered.
The Tamilnadu Government should persuade the Union Government to reduce the Central Sales Tax to 1% with effect from 1st April 2009.
Mahendra Ramdas
President